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Accounting Policies of Sicagen India Ltd. Company

Mar 31, 2017

1. Basis of Preparation

The financial statements of the company have been prepared in accordance with the Generally accepted accounting Principles in India ( GAAP) under the historical cost convention on accrual basis and to complying with applicable Mandatory Accounting Standards as prescribed under Section 133 of the companies act 2013 read with Rule 7 of the companies (accounts) Rules 2014, till the Standards of Accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 (the ''Act'') shall continue to apply. Consequently, these financial statements are prepared to comply in all material aspects with the Accounting Standards notified under sub-section (3C) of Section 211 of the Act [Companies (Accounting Standards) Rules, 2006] and the other relevant provisions of the Companies Act, 2013.

Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that are considered in the reported amounts of assets and Liabilities ( including contingent liabilities) on the date of financial statements and reported amounts of revenues and expenses for the year. Estimates are based on historical experience, where applicable and other assumption that management believes are reasonable under the circumstances. Actual results may vary from these estimates and any such differences are dealt in the period in which they are known/ materialize.

Current/Non Current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/ non-current classification of assets and liabilities.

2. Fixed Assets and Depreciation

Fixed Assets are stated at cost less accumulated depreciation. Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 and useful life of the assets on the following methods.

a) Assets of all divisions are calculated at straight Line method.

b) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

c) Improvements on leasehold premises are depreciated over the tenure of the lease.

d) Any asset purchased during the year with a value less than Rs.5000 is charged off as revenue expenditure.

Acquired intangible assets

Intangible assets including software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

3. Impairment of Assets

Assessment is carried out at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired. The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Impairment loss is provided to the extent the carrying amount of assets exceed their recoverable value.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Investments

Long Term Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes acquisition charges and the interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services division.

b) Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost is determined on materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals divisions and Moving Weighted Average Cost for Goodwill Governor Services division.

c) Work-in-process on ship building contracts reflects proportionate value of input and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works division.

7. Excise Duty

a) Cenvat credit on materials purchased for production is taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable is taken into account as and when the assets are installed, to the credit of respective purchase and asset account. The cenvat credit so taken is utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

8. Revenue Recognition

Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

a) Sale of goods

Revenues from sale of products are accounted net of returns, discount and sales tax and are recognized at the point of dispatch .

b) Sales of Service

i. Revenue from services is recognized when billed on completion of services.

ii. Revenue in Goodwill Engineering works division is recognized as and when the Boat is ready for delivery.

c) Other operating Income

Other operating income comprises income from activities incidental to the operations of the company and is recognized as and when the right to receive the income is established.

d) Other Income

Interest income is accounted on accrual basis. Dividend income is accounted as and when the right to receive the dividend is established.

9. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at the exchange rates prevailing on the date of transaction.

Foreign currency monetary assets and liabilities wherever receivable or payable are translated at exchange rates prevailing on the Balance Sheet date and the exchange differences arising on settlement or translation of monetary items are adjusted in the statement of Profit and Loss account in the period it arises.

10. Post-employment and long term employee Benefits

Defined contribution plans

a) Company''s contribution to the Employees Provident Fund/Superannuation Fund, the Employee State Insurance and other funds are determined under the relevant scheme / or any other applicable and charged to the statement of profit and Loss account in the period of incurrence when the services are rendered by the employees.

b) Company employees are covered under superannuation schemes, State governed provident funds scheme, employees state insurance scheme and group medical and personal accident insurance.

c) Retirement benefits in the form of Provident Fund/ Superannuation Fund are defined contribution schemes and the contributions are charged to the statement of Profit and Loss account in the year in which the contributions to the respective funds are due.

d) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

e) Company''s liability toward gratuity and other retirement benefits are actuarially determined at each balance sheet date The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

f) Actuarial gains/losses are charged to statement of Profit and Loss immediately in each year.

11. Provision for Current Tax and Deferred Tax

Provision for Current Tax liability is estimated after taking into consideration benefits admissible at the current rate of tax under the provisions of the Income Tax Act 1961.

Deferred tax is recognized for all timing differences between the taxable income and accounting income subject to prudence in respect of deferred tax assets. Deferred tax is measured using the tax rates and tax laws that are enacted or substantively enacted as on the balance sheet date.

12. Provisions & Contingent Liabilities

The company recognizes provision when there is a present obligation for a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made and all known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions. And Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure is made.

13. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17. The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Further, inter-segment revenue has been accounted for based on the transaction price, which is market based. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities for the segment. Revenue and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis, have been included under “Unallocated Corporate Income net of Unallocated Corporate expenditure”.

14. Cash Flow Statement

Cash flow statements are made using the indirect method whereby profit / (loss ) before extra ordinary items / exceptional items and tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments The cash flows from operating , investing and financing activities of the company are segregated based on available information including taxes paid relating to these activities.


Mar 31, 2015

1. Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Change in Accounting Policies

During the current year, the method of calculating depreciation has been changed to straight line method uniformly for all divisions other than Agri division. However there is no material impact for the mentioned divisions.

3. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Depreciation

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 and useful life of the assets on the following methods.

a) Assets of All divisions are calculated at straight Line method.

b) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost..

c) Improvements on leasehold premises are depreciated over the tenure of the lease.

d) Assets whose cost does not exceed Rs.5000 are fully depreciated.

6. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

7. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services; based on customers' preferences for Commercial Vehicles Division.

b) Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals and Moving Weighted Average Cost for Goodwill Governor Services.

c) Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works.

8. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

9. Excise Duty

a) Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

10. Revenue Recognition

a) Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b) Sales are net of discount and sales tax and are recognized at the point of dispatch of goods.

c) Service Income

(i) Income is recognized when billed on completion of services.

(ii) Income from boat building is recognized as and when it is ready for delivery.

11. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

12. Retirement Benefits

a) Retirement benefits in the form of Provident Fund/ Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c) Actuarial gains/losses are charged to Profit and Loss Account.

13. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

14. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

15. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961.Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2014

1. Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Change in Accounting Policies

During the current year, the method of valuation of inventory has been changed from first in first out to Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services. However there is no material impact for the mentioned divisions.

3. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a) Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals at written down value method

b) Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d) Improvements on leasehold premises are depreciated over the tenure of the lease.

e) Assets whose cost does not exceed Rs.5000 are fully depreciated.

6. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

7. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services; based on customers'' preferences for Commercial Vehicles Division.

b) Finished goods and work in progress are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals and Moving Weighted Average Cost for Goodwill Governor Services.

c) Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works.

8. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets'' recoverable value with its carrying amount in the books. In case carrying amounts exceeds recoverable value, impairment losses are provided for.

9. Excise Duty

a) Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

10. Revenue Recognition

a. Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b. Sales are net of discount and sales tax and are recognized at the point of dispatch of goods.

c. Service Income

1) Income is recognized when billed on completion of services.

2) Income from boat building is recognized as and when it is ready for delivery.

11. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

12. Retirement Benefits

a) Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c) Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d) Actuarial gains/losses are charged to Profit and Loss Account.

13. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

14. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard - 17.

15. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2013

1. Basis of Preparation

The Financial Statements relate to Sicagen India Limited. These Financial Statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a). Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals at written down value method.

b). Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c). Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d). Improvements on leasehold premises are depreciated over the tenure of the lease.

e). Assets whose cost does not exceed Rs.5000 are fully depreciated.

5. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6. Inventories

a). Trading Stock, Stores and Spares, Raw materials, Packing Materials are valued at cost, computed on first-in- first-out basis. ''

b). Finished Goods and Work in Process are valued at the lower of cost and estimated Net Realizable Value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads.

c). Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d). Loose tools are valued after writing off a certain percentage on cost.

7. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. In case carrying amounts exceeds recoverable value, impairment losses are provided for.

8. Excise Duty

a). CENVAT Credit on materials purchased for production are taken into account at the time of purchase and CENVAT Credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The CENVAT Credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized CENVAT Credit is carried forward in the books.

b). Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9. Revenue Recognition

a). Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b). Sales are net of discount and sales tax and is recognized at the point of dispatch of goods.

c). Service Income

1) Income is recognized when billed on completion of services.

2) Income from boat building is recognized as and when it is ready for delivery.

10. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss Account.

11. Retirement Benefits

a). Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss Account in the year in which the contributions to the respective funds are due.

b). Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c). Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d). Actuarial gains/losses are charged to Profit and Loss Account.

12. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

13. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

14. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2012

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act. 1956 on the following methods.

a Assets of Building Materials Division , Governor Services, Engineering Division, Speciality Chemicals at written down value method, b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease, e Assets whose cost does not exceed Rs 5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads, c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed, d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat Credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The Cenvat Credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized Cenvat credit is carried forward in the books, b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods, c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year, c Obligation for Leave Encashment is recognized in the same manner as Gratuity, d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard-17.

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard-24.

15 Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961 Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2011

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a Assets of Building Materials Division , Governor Services, Engineering Division, Speciality Chemicals at written down value method.

b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease. e Assets whose cost does not exceed Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads.

c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods. c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard -24

15 Provision for Current Tax and Deferred Tax

Provision for Current Ta x is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961.Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2010

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies-Act. 1956 on the following methods.

a Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals, Travels

Division at written down value method. b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method. c Depreciation on certain premises is provided on composite c^t where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease.

e Assets whose cost does not exceed Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock. Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads. c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed. d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods. c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

3 Expenditure incurred on incomplete contracts is included under "Advances Recoverable".

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the profit and loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprises future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard -24.

15 Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.

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